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Over the past few weeks, XRP has performed extremely poorly amid the tumultuous macro environment. BTC is trading around 14% down from its $10,500 high (data from TradingView), but the third-largest cryptocurrency, XRP, has lost 30% in the same time period.
Despite this, a prominent cryptocurrency trader — one that called Bitcoin’s bottom at $6,400, the subsequent reversal to near $11,000, then the retracement to $8,500 — says that the asset is likely to form a “very significant pattern” that will see it trade at $0.40 in the relatively near future.
XRP Could See “Very Significant” Bottoming Pattern
Dave the Wave, one of the most accurate traders in the industry over the past few months, recently shared the below chart, showing that the leading cryptocurrency is likely forming a bottoming inverse head and shoulders pattern, whose neckline sits at $0.33.
Right now, the asset is in the midst of the right shoulder, which has been supported by the 0.5 Fibonacci Retracement of the $0.17 to $0.34 move. Should the textbook pattern play out in full, Dave the Wave’s chart suggests XRP will trade 80% higher at $0.40 by June.
Related Reading: Analyst Explains Why Bitcoin Investors Shouldn’t “Pray for a Recession”
Ripple Just Saw An Extremely Positive News Event
The purportedly strong technical outlook has been underscored by a news event that has the potential to boost Bitcoin and its ilk, but especially XRP.
The news event: on Wednesday, India’s top court struck down a directive from the Reserve Bank of India that banned banks from offering services to those that dabble in cryptocurrency, whether it be Bitcoin or XRP or otherwise.
According to Credible Crypto, a prominent industry commentator and trader, this decision by the Supreme Court to reverse the ban will be especially bullish for XRP. He explained:
“Regulatory clarity was the final piece of the puzzle that was holding Ripple back from going after the Indian remittance market aggressively. Great for XRP.”
Indeed, per previous reports from NewsBTC published in 2018, an executive at the fintech upstart said during a panel at Wharton School of Business that digital payments and remittances will be huge for Indians in the future:
“Where’s the future? And so we realized in the next five years, one billion people will become banked in India, but they’ll be banked through their phone. So then we started targeting mobile phone providers and telcos.”
Featured Image from Shutterstock
